Canadia Bank

completed

The project entails IFC providing Canadia Bank PLC (Canadia, the bank or the company) a credit line of up to $5 million to help finance the growth of the bank’s residential mortgage portfolio. The purpose is to augment the level of home ownership within the middle-income segment of the population by supporting the promotion of housing finance products in Cambodia. The objectives of this project are the following: - The bank aims to tap into the increased demand from middle-income homebuyers by providing financing for mid-range priced housing units with longer tenured loans. Given the growth in population and an emerging young and upwardly mobile middle-income segment, the demand for new housing is strong. - The tenor and pricing of IFC’s credit line will allow the bank access to long-term funding to better manage its growing long-term mortgage loan exposure. - Canadia Bank is Cambodia’s largest private sector bank, with total assets as of December 2003 amounting to $191.2 million, equity of $22.4 million, and a net income of $3.5 million for FY 2003. With over 300 employees, Canadia offers a wide range of financial services through its network of eleven branches throughout Cambodia. Some dates of importance are the following : 1991 - Canadia Bank was established as Canadia Gold & Trust Corporation Limited, a joint venture between overseas Cambodians and the National Bank of Cambodia.1993 - The name of the bank was changed to Canadia Bank Limited, as it was transformed into a commercial bank registered under the Ministry of Commerce and the National Bank of Cambodia. 1994 - Canadia was the first Cambodian bank to be granted a foreign exchange license.1998 - The bank was fully privatized.